Side Hustles Could Help You Enter Housing Market

First home buyers struggling to enter the property ladder may have the second-hand economy to thank when saving for their deposits. With Australia’s national slow wage growth, an increasingly underemployed workforce and high entry prices for desirable real estate markets, first-home buyers facing significant challenges when overcoming the deposit hurdle.

A side hustle could produce some extra earnings outside of full-time work which could in turn be what a hopeful home buyer needs to grow their savings.

“The whole point of the side hustle is to make more money,” technology commentator Trevor Long said.

“They’re either in a job and they’re not earning enough or they’re in the freelance world where you don’t have a single job, you just find income wherever you can. Selling stuff is just another form of income to some people.”

Financial planner and SugarMamma.TV founder Canna Campbell said a side hustle was “almost like a secondary business” and earning extra money was a great first step towards financial freedom.

“If you proactively put it into a bank account with a goal, whether it’s a home or an investment property, you start making that money really count.”

Side hustles don’t need to be limited to freelancing or Etsy stores either. She recently held a competition to discover the most creative side hustle. “You’d be amazed what people come up with,” she said.

“One person was growing bonsai trees and selling them and making $400 a month in cash. Other people were growing food and making jams.”

The Second-hand economy

According to Gumtree’s 2018 Second Hand Economy report, on average Australians have 25 unwanted items in their homes. The report states that the average worth of these accumulated items is the sweet total of $4200 per household.

While the prices of properties will continue to make property ownership unattainable for many millennials, selling unwanted items could turn out to be a lucrative “side hustle” needed to grow savings.

According to the Gumtree Report, it is millennials who are best placed to take advantage of the $34 billion second-hand economy and most likely to contribute the proceeds to a home deposit. This demographic group is also made up of those most at the mercy of pricey real estate markets in Australian capitals.

This unique position of millennials is as the generation own more valuable unwanted items than other generations. The report stating that they are hoarding an average of $5040 worth of stuff per household. Gumtree Australia’s managing director Martin Herbert stated that due to their digital literacy, the group are also earning more money when they sell their items.

“With greater savviness comes the ability to sell things at a higher price and the confidence that they can actually get more value of out those things,” Mr Herbert said.

Which items are best to sell?

According to the Gumtree report, items such as clothing, shoes and accessories are the most popular items to sell. Followed by homewares, furniture and electronic goods.

“The thing in your pocket is worth money to someone who doesn’t want to sign a contract or doesn’t have the money to spend $1500 on a phone, but would certainly spend a few hundred.” Mobile phones are one of the easiest to sell due to the technology frequently being updated and ease of valuing the items.

Tips to sell unwanted stuff online

According to Domain.com.

1. Declutter – Sort through your stuff and decide what is worth keeping and what you can get rid of.
2. Research – Search online for similar items for their estimated value. Keep in mind certain items may be worth more in different areas.
3. Photos – Take several photos of each item from different angles and in good lighting. Take photos of any marks or damage to the item so that the buyer knows what they’re getting.
4. List it – Post your ad on all relevant sites including Gumtree, eBay and Marketplace. Forums and message boards may be effective for attracting specialist items that appeal to enthusiasts.
5. Pick up – Once you’ve agreed on a price, arrange for the buyer to pick up the item at a convenient time. Offering pickup both at home and at work can help sell an item quicker.